ZIMPLATS HOLDINGS LIMITED — Earnings Release 2013

Aug 28, 2013

Appendix 4E

Preliminary Final Report Zimplats Holdings Limited ARBN: 083 463 058 Australian Stock Exchange code: ZIM

Year ended 30 June 2013

Results for announcement to the market

			2013 US$000	2012 US$000
1.	Revenue from ordinary activities	Down 0.3%	471,647	473 280
2.	Profit from ordinary activities after tax attributable to members	Down 44%	68,254	122 359
3.	Net Profit attributable to members	Down 44%	68,254	122 359

The audited financial statements for the year ended 30 June 2013, which include the independent auditor’s report, have been released and are available on the Zimplats website.

Finance

• Turnover at US$472 million was 0.3% lower the previous year’s US$473 million, despite a 4% increase in platinum sales volume due to the decrease in metal prices experienced in the second half of the year. Gross revenue per platinum ounce decreased by 4% from US$2 528 to US$2 432.

• Total operating costs for the year, excluding share based payments, community development contributions and prior years’ tax penalties at US$347 million was 14% above the previous year’s US$305 million. This was due to the increased production volumes in conjunction with higher cost of production driven by inflation and inefficiencies associated with operating the concentrators at lower mass pull. Resultantly, operating cash cost per platinum ounce increased by 5% to US$1 287.

• Consequently, profit before tax for the year amounted to US$109 million, 28% lower than the US$151 million for the previous year. The net profit attributable to members for the year at US$68 million was 44% lower than the previous year’s US$122 million mainly due to US$60 million prior years’ tax charges and associated interest and penalties.

• At year end, Zimplats had bank borrowings of US$105 million and a cash balance of US$4 million.

Safety

• Safety performance for the year was disappointing with twelve lost time injuries incurred, 200% higher than the previous year and a lost time injury frequency rate of 0.70 against 0.21 in the previous year. No fatalities were however experienced in the year.

Operations

• Ore mined for the year at 4.79 million tonnes was 5% above the previous year mainly reflecting the contribution of ore from Mupfuti Mine decline development.

• A total of 4.68 million tonnes were milled at the concentrators, 7% above previous year due to higher milling rates achieved at both concentrators and additional capacity at Ngezi following the commissioning of the Phase II concentrator in the final quarter of the year.

Overall recovery rates at 82.7% were marginally higher than the previous year’s 82.6%.

• Platinum production (in matte and concentrates sold) for the year at 198 104 ounces was 6% above previous year. The furnace was successfully relined in the first half of the year. Two unplanned stoppages were experienced at the smelter in November 2012 and December 2012 due to fire and furnace run-out incidents. A total of 32 063 ounces of platinum were exported as concentrates during these outages.

Expansion Projects

• Implementation of the Ngezi Phase II Expansion project is progressing well. To date, US$342 million of the project budget has been spent and $40 million has been committed.

Ore Reserves

• There has been no material change in the company’s ore reserves as reported last year.

Dividend

• No dividend has been declared for the financial year ended 30 June 2013.

This report is based on accounts which have been audited.